In this article, we discuss the 5 best EV stocks for the long-term. If you want to read our detailed analysis of these stocks, go directly to the 10 Best EV Stocks For The Long Term.
5. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 39
Amphenol Corporation (NYSE:APH) markets electrical components and fiber connectors. The products of the firm are used in electronics all over the world and also play a part in EV manufacturing. The firm recently posted earnings for the third quarter, reporting earnings per share of $0.65, beating estimates by $0.02. The revenue over the period was $2.8 billion, up 21% year-on-year. It also increased the dividend payout by 38% to $0.20 per share.
Goldman Sachs, Citi, Cowen and Jefferies all recently raised the price target on Amphenol Corporation (NYSE:APH) stock. Evercore ISI recently termed the stock a “sleeper electric vehicle pick” at an auto-tech conference.
At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Amphenol Corporation (NYSE:APH).
In its Q4 2020 investor letter, Richie Capital Group LLC, an asset management firm, highlighted a few stocks and Amphenol Corporation (NYSE:APH) was one of them. Here is what the fund said:
“Amphenol (APH – Up 18.7%) – In December, our high-speed, specialty connector manufacturer announced the acquisition of MTS Systems Corp for $1.7B to enhance their sensor products catalog. Having completed more than a dozen acquisitions since 2016, growth through acquisition is a key tenet of their business strategy and we view this transaction as business as usual. You can read more about our investment thesis for Amphenol here.”
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 55
Ford Motor Company (NYSE:F) is a Michigan-based automaker. The company is perhaps the largest and most established traditional carmaker that has emerged as a serious contender in the EV market over the past few years. It recently unveiled the all-new Ford F-150 all electric truck, the EV version of the popular F-150 model, and has lined up more releases over the year. Earlier this month, the company revealed that EV sales for October had jumped 195% year-on-year to 14,062 vehicles.
Benchmark analyst Michael Ward recently raised the price target on Ford Motor Company (NYSE:F) stock to $20 from $18 and kept a Buy rating on the shares, underlining the earnings beat of the firm in the third quarter.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Ford Motor Company (NYSE:F), up from 49 in the preceding quarter worth $2.1 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) is the biggest EV brand in the world. After better-than-expected third quarter earnings, investors have helped push the valuation of the firm to over $1 trillion, more than the combined worth of the whole industry.
Loup Ventures analyst Gene Munster recently suggested that there is even further upside potential in Tesla, Inc. (NASDAQ:TSLA) shares, noting the firm could be worth $2.5 trillion based on growing sales estimates and expanding multiples.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ:TSLA).
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 64
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is featured on our list of long-term EV stocks since it is perhaps the biggest chipmaker in the world. Semiconductor chips form an integral part of EV manufacturing, the importance of which can be gauged from the fact that a recent chip shortage has resulted in large delays in EV production around the world, with even established car makers struggling to meet pre-orders.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) recently announced that it would be setting up a semiconductor manufacturing plant in Japan as part of an expansion plan with electronics firm Sony Corporation.
At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $10.6 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter.
Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years.
TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 76
Argus analyst David Coleman recently raised the price target on Freeport-McMoRan Inc. (NYSE:FCX) stock to $45 from $40 and kept a Buy rating on the shares, and noted that the company would benefit from the rising metal prices. The firm operates as a metals mining firm with core interests in copper. Copper is used to make several parts of an EV, hence the firm is a top EV stock in the long-term.
Freeport-McMoRan Inc. (NYSE:FCX) recently beat market estimates on earnings per share by $0.09. The company has benefited from the increase in metal prices due to high demand and supply shortages.
At the end of the second quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Freeport-McMoRan Inc. (NYSE: FCX), up from 68 in the preceding quarter worth $3.2 billion.
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